Definition of key words

Alpha model is an algorithm that transforms data numbers associated with each stock.

Alpha value refers to a single value for a single stock, for a single time period.

Alpha vector has a number for each stock, and the number is proportional to the amount of money we wish to allocate for each stock.

Alpha factor: a time series of alpha vectors (over multiple time periods).

Raw alpha factor: a version of an alpha factor before additional processing.

Stock universe: set of stocks under consideration for the portfolio.